NotesTrade-off
Really any valued alternative to a decision you could make.
Opportunity Cost
The highest valued alternative that you have to give to be able to engage in an activity. It is a type of trade-off.
Value of Time
People value time differently.
Marginal Thinking
Thinking about if the additional benefit is greater than the additional cost.
Basically, critical thinking to make sure you’re doing the most beneficial action.
Trade
Trade creates value and depends on specialization and competitive advantage. Remember back to macroeconomics; countries choose their most productive and least costly industries, and they trade to be able to decrease prices while increasing value.
Lean manufacturing (just in time manufacturing) has globalized trade and allowed for a huge increase in this.